TAKE ACTION TO REDUCE TAXES ON COMMUTER BENEFITS!
As a result of the new federal tax law, nonprofit employers must now pay
Unrelated Business Income Tax (UBIT)
on commuter benefits, including Buffalo NFTA Metro Pass, NYC Metrocard, Rochester RTS Pass, or employee parking. New York law imposes a state UBIT whenever federal law does. As a result, New York will automatically follow the new federal statute, imposing an additional 9% tax.
This means that any employer with 40 employees, each of whom receives $150 per month in pre-tax commuter benefits, could owe New York State $6,480 in new taxes each year.
For more information, see this
FAQ
.
NPCC is part of a coalition that is advocating with New York State to reform our state tax law and reduce the cost to nonprofits by decoupling the federal and state law, therefore keeping New York from charging the 9% tax on these benefits.
The federal tax law harms nonprofits by imposing a new state tax on commuter benefits. This could cost nonprofits as much as $280 per employee each year. My nonprofit's resources should be used for our mission. New York State should not impose this new tax on commuter benefits.
- FOR ASSEMBLY MEMBERS: Please introduce legislation like S8831 to decouple the state and federal tax law. Thank you.
- FOR SENATORS: Please co-sponsor S8831 to decouple the state and federal tax law. Thank you.
If you know how much your organization's employees spend on pre-tax benefits, you can use this language instead:
The federal tax law harms nonprofits by imposing a new state tax on commuter benefits. For my organization that would be a yearly increase of ([total amount of pre-tax compensation your organization's employees direct to commuter benefits each month] *12 *.09). My nonprofit's resources should be used for our mission. New York State should not impose this new tax on commuter benefits.
- FOR ASSEMBLY MEMBERS: Please introduce legislation like S8831 to decouple the state and federal tax law. Thank you.
- FOR SENATORS: Please co-sponsor S8831 to decouple the state and federal tax law. Thank you.
As always, thanks for all that you do for the sector and our communities.
